How much does email marketing cost?

how much does email marketing cost

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Customer acquisition to customer retention can all be handled with ease when you have a sound email marketing campaign designed according to your budget.

In the digital era, you have multiple platforms through which you can reach out to your audience. That being said, not all of them are free. With some, there is a cost incurred. The same holds good even for email marketing. There is a cost that you would have to add to your budget if email marketing is part of your plan.

So what is that expense incurred?

How much would you be spending if you choose to have email marketing?

Is it cheaper to get it done in-house?

Cost of email marketing

Most companies spend $300-$500 for email marketing software and outsourcing in general. The actual price of email marketing varies depending on the type of services you choose and the level of automation you need.

Here are some factors that influence the total expense incurred-

Email service provider costs are the direct costs that you cannot avoid. Whether you choose to outsource your email campaigns or do them, the in-house cost of working with an email provider is unavoidable. Pick someone that offers a scalable package where you can add more features at a slightly bigger budget when your business starts growing.

Creating the mailing list is the first and foremost step. The sources you use to gather the email ids determine the cost of mailing list creation. Remember that your efforts do not end with the creation of the list. Maintaining an updated list with the hard bounce initiating email ids removed promptly is important. This maintains the credibility of your mail account and gives you good results in the periodic analytics.

A skeleton of your marketing campaign will help you better gauge the scope of the project. The scope also includes details like the number of mailers to target, frequency of the mails, and type of content you mail.

Content creation costs are the other elements that add to the email marketing costs. This is crucial because even critical aspects like bounce rates depend on the content. You need personalized content, and it should also add value to the receiver in some way.

When you pick a marketing software that delivers automation, you are investing in efforts that reduce time. You can also be assured of staying in touch with your customers regularly. As automation takes care of customer communications, you can shift your focus on customer engagement and the bigger picture. Automation, integrated email tools might be slightly more expensive. However, these can save you tonnes of time and effort. For large businesses with huge mailing lists, this automation can be a huge benefit.

Summing all the attributes together, you would also have to analyze the objective of the email campaign to work on a budget to set aside. You should be able to work on a proportion of how much to invest in email marketing and how much on the other marketing channels and social media.

Returns on the investment on email market software

On average, you can expect returns around $44 for each dollar you spend on email marketing. That is a neat deal, even for a small business. Remember however that this figure is relative and heavily dependent on the attributes of your campaign.

  • How frequently you send emails
  • How relevant the emails are
  • Personalization of the content
  • Faster loading speeds
  • Low bounce rates


These are all some drivers that can push your returns from email campaigns. With resilient software to handle the campaigns, if you carefully inspect the above factors, then you are likely to get good returns in a short duration.

In-house is not always the cheapest option

In-house email marketing decisions come as a cost-cutting talk in small businesses or a long term option in very large businesses. When you consider the cost aspects, outsourcing is all about investing in extracting every last drop from your campaign. You can always find a simple plan that falls within your small-sized budget. You might be spending more money if you try and recruit resources to take care of email campaigns. You need the best tools and resources with good knowledge and experience in the field. That is when you would be able to make the most of your email campaign and stay ahead in the competition.

Considering these aspects, you might find outsourcing this task to be a more profitable decision. The dedicated team will handle the entire process from creating the campaign to analyzing the performance of the campaign. With the profits you constantly generate, you would also be able to lay a strong foundation for your growing business.

For all these and many more benefits, businesses big and small pick email marketing campaigns by working with the experts in the field. You can always negotiate and work on a budget that gets what you want with the option to add more later, as your company grows.

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